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Multiple Product Break-Even Analysis Joe's Tax Service provides professional accounting and tax services. All tax return services are classified into one of three categories:
Multiple Product Break-Even Analysis Joe's Tax Service provides professional accounting and tax services. All tax return services are classified into one of three categories: standard, multiform, and complex. Following is information for last year. Also, last year, the fixed cost of rent, utilities, and so forth were $65,000. Standard Multiform Complex Billing rate $65 $140 $265 Average variable costs (30) (75) (150) Average contribution margin $35 $65 $115 Number of returns prepared 1,750 500 250 Required (a.) Determine Joe's break-even dollar sales volume. Enter billing rates and contribution margins using all decimals, when needed. Round contribution margin ratio to three decimal places. Round break-even sales volume to the nearest dollar. Weighted Weighted Contribution Product Billing Rate Margin Standard $ 0 $ 0 Multiform 0 0 Complex 0 0 Total $ 0 $ 0 Contribution margin ratio: 0 Break-even sales volume: $ 0 (b.) Determine Joe's margin of safety in sales dollars. Hint: Use weighted average billing rate. Round answer to the nearest whole number. $ 0
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